Blue Ocean Strategy
A REPORT ON THE
ANALYSIS OF BLUE OCEAN STRATEGY AND ITS IMPLICATIONS
CONDUCTED BY:
NAME: MBURU
ID: L0471ALAL0211
MODULE: STRATEGIC INFORMATION MANAGEMENT
LECTURER: DAVID ACQUAYE
COURSE: BA-BMS 4
DATE: 19TH APRIL, 2012
WORDS: 3,776
SCHOOL: LONDON SCHOOL OF COMMERCE
LONDON, UNITED KINGDOM
Table of Contents
Executive Summary3
Chapter One
Definition of Blue Ocean Strategy4
The Authors6
Chapter Two
Introduction7
Major Differences Between Blue Ocean and Red Ocean7
Conclusion7
Chapter Three
Introduction10
The Four Actions Framework10
The Four Actions Framework In Practice10
The ERRC Grid10
Chapter Four
Conclusion16
Recommendations17
Reference List18
EXECUTIVE SUMMARY
The author carried out this research in order to help the reader understand what a Blue Ocean Strategy (BOS) is and what implications it has on performance of businesses. The report starts with the concept of blue oceans and red oceans in trying to define the BOS. It goes on to look at the different frameworks employed when implementing BOS in the search of blue waters and also provides practical examples of companies which have created uncontested market space and new demand. The final chapter concludes the report and offers some recommendations.
CHAPTER ONE
DEFINITION OF BLUE OCEAN STRATEGY In order to define blue ocean strategy (BOS), it is important to understand first what blue oceans are and what a strategy is. To understand blue oceans, consider a market universe made up of two kinds of oceans: one red and another blue. The red oceans indicate all the industries that are well known of today i.e. known market space. On the other hand, blue oceans indicates all the industries that we do not know of today, those that do not exist i.e. unknown market space.
In the red oceans, as the market space is known, the boundaries are identifiable and accepted, and the rules of competition are also known. Therefore, companies work harder to perform better than
ANALYSIS OF BLUE OCEAN STRATEGY AND ITS IMPLICATIONS
CONDUCTED BY:
NAME: MBURU
ID: L0471ALAL0211
MODULE: STRATEGIC INFORMATION MANAGEMENT
LECTURER: DAVID ACQUAYE
COURSE: BA-BMS 4
DATE: 19TH APRIL, 2012
WORDS: 3,776
SCHOOL: LONDON SCHOOL OF COMMERCE
LONDON, UNITED KINGDOM
Table of Contents
Executive Summary3
Chapter One
Definition of Blue Ocean Strategy4
The Authors6
Chapter Two
Introduction7
Major Differences Between Blue Ocean and Red Ocean7
Conclusion7
Chapter Three
Introduction10
The Four Actions Framework10
The Four Actions Framework In Practice10
The ERRC Grid10
Chapter Four
Conclusion16
Recommendations17
Reference List18
EXECUTIVE SUMMARY
The author carried out this research in order to help the reader understand what a Blue Ocean Strategy (BOS) is and what implications it has on performance of businesses. The report starts with the concept of blue oceans and red oceans in trying to define the BOS. It goes on to look at the different frameworks employed when implementing BOS in the search of blue waters and also provides practical examples of companies which have created uncontested market space and new demand. The final chapter concludes the report and offers some recommendations.
CHAPTER ONE
DEFINITION OF BLUE OCEAN STRATEGY In order to define blue ocean strategy (BOS), it is important to understand first what blue oceans are and what a strategy is. To understand blue oceans, consider a market universe made up of two kinds of oceans: one red and another blue. The red oceans indicate all the industries that are well known of today i.e. known market space. On the other hand, blue oceans indicates all the industries that we do not know of today, those that do not exist i.e. unknown market space.
In the red oceans, as the market space is known, the boundaries are identifiable and accepted, and the rules of competition are also known. Therefore, companies work harder to perform better than
References: * California Management Review, (2005) Blue Ocean Strategy: From Theory to Practice. International journal, vol. 47, no. 3 Spring 2005 page 105-120 * Dr. Sarah Layton, 2009, Blue Ocean Strategy – Red Ocean vs. Blue Ocean, Blogpost, (on-line) available http://blueoceanstrategicplanning.blogspot.co.uk/2009/04/red-ocean-vs-blue-ocean.html, accessed on 8th April, 2012 * Gerry Johnson and Kevan Scholes, Exploring Corporate Strategy, fourth edition, Prentice Hall, 1997, Cited in Jerome Payne, Integrated Management, 2007, available http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=20&hid=9&sid=ab22f3f5-5e16-48e9-b3e8-5cd7f5ab58e7%40sessionmgr15 , Accessed on 20th March, 2012 page 37-40 * Joyce Fan, (2009), Win-Win, second issue, Huawei COMMUNICATE Editorial Board, China, available at: http://www.huawei.com/en/static/hw-079487.pdf , Accessed on 10th April, 2012 page 1-4 * W. Chan Kim and Renée Mauborgne, (2005), Blue Ocean Strategy – How To Create Uncontested Market Space and Make the Competition Irrelevant, first edition, Harvard Business School Publishing Corporation, United States of America. * Web 1: Blue Ocean Strategy, (on-line) available http://blueoceanstrategy.com/aut/renee_mauborgne.html, Accessed on 11th March, 2012 and (http://blueoceanstrategy.com/aut/chan_kim.html Accessed on 11th March, 2012 * Richard Whittington, (2003), What is strategy – and does it matter? Second edition, International Thomson Learning Business Press, London.